Covestro mulling Adnoc bid ahead of Q3 results

Leverkusen, Germany – A bid to acquire the company by Abu Dhabi National Oil Co. (Adnoc) looks set to be high on the agenda when Covestro AG reports group third quarter results on 27 Oct.

German-based polyurethanes and polycarbonate maker Covestro AG executive board has already confirmed a decision to enter into “open-ended discussions” with Adnoc

“Whether, in which form and, if applicable, at which conditions an agreement between the parties will be reached is open and will depend on the course of the forthcoming discussions, it stated in September.

According to the board, Covestro is particularly focussed on “safeguarding of the further implementation of its future- and sustainability-oriented corporate strategy, including corresponding corporate governance provisions.”

“The interest of Adnoc in our company underlines our strong position as one of the world’s leading manufacturers of high-quality polymer materials and as a leader in the shift towards a circular economy,” said Covestro CEO Dr. Markus Steilemann.

“Beyond current headwinds in our industry, we are optimally positioned to unlock significant long-term value in highly attractive industries underpinned by strong secular growth trends,” added Steilemann.

Regardless of the talks with Adnoc, Covestro “will remain fully focused on pursuing our [sustainability] strategy... to drive the transformation towards the circular economy,” the CEO concluded.

In March, Covestro reported a 48% year-on-year decline in earnings (EBITDA) for its 2022 financial year, despite sales coming in 13.0% higher at €18.0 billion.

Covestro linked the steep decline in profitability particularly to a sharp rise in energy and raw material prices during the year, especially in Europe.